Deduction in respect of Health Insurance Premium (Section 80D)

Everybody knows medical emergencies can occur at any time or at any age in the life of any individual and nobody can guess about these emergencies so it is very safe to take health insurance policy. And in order to promote these policies government take very good initiative in favor of individual to reduce gross total income by the premium paid as per provision mentioned below under this section.

An individual or HUF can claim deduction of premium paid on health insurance in order to save tax up to Maximum amount of Rs. 1,00,000. And individual or HUF can reduce their gross total income as per the below mentioned provisions. 

Health Insurance Premium or Medical Expenditure (Payment in any mode other than cash)

Following scenario to check how much claim individual or HUF can take…

Age Self, Family & Dependent Children (Maximum limit) Parents (Maximum limit) Total (Maximum limit)
Below 60 Year 25,000 25,000 50,000
60 year or more 50,000 50,000 1,00,000
If individual is below 60 year but parents 60 year or more 25,000 50,000 75,000

HUF can claim premium paid on health insurance for members of HUF up to Rs. 25,000.

Preventive Health Checkup (it can be made in cash)

If an individual’s limit as per above provision is not exhausted and payment made towards preventive health checkup for himself/herself, spouse, dependent children or parents, then individual can claim up to Rs. 5,000 but overall limit cannot exceed Rs. 1,00,000 under this section.

Central Government Health Scheme (Payment in any mode other than cash)

An individual can also claim deduction as per above chart under this section if such individual invests their income as per health scheme notified by central government but overall limit cannot exceed Rs. 1,00,000 under this section. (Only for individual for himself/herself, spouse or dependent children are allowed and CG health scheme is not allowed in case of parents of individual or Members of HUF).

Example: If premium paid on medical insurance of Rs. 15,000 by an individual having age of 34 years for self then such individual can claim lower of Rs. 15,000 (premium paid on medical insurance) or Rs. 25,000 (maximum amount permissible under this section). Hence such individual can claim Rs. 15,000 u/s 80D. 

Author Bio

Qualification: CA in Practice
Company: Ankit Mahendra & Associates
Location: Lalitpur, Uttar Pradesh, IN
Member Since: 13 Jul 2020 | Total Posts: 14
I am qualified chartered accountant, engaged in practice and experience in Income Tax return filing, tax audit, Goods & Services Tax return filing, GST audit, various registration and incorporation etc. View Full Profile

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April 2021